INITIAL ENVIRONMENTAL EXAMINATION (IEE)Amendment #1 to Indonesia IEE Asia 15-061 for Essential Services Program

Project/Activity Name: Essential Services Program(PAD3/DO2: Essential Services for the Poorest and Most Vulnerable Improved)

Geographic Location(s): IndonesiaAmendment: Yes, Amendment #1 to Asia 15-061Implementation Start/End Dates: March 1, 2016 to September 30, 2021If Amended, specify New End Date:

December 31, 2021

Solicitation/Contract/Award Number:

AID-497-TO-16-00003 for IUWASH PLUS ActivityAID-497-C-17-00001 for JALIN Activity

Implementing Partner(s): DAI Global, LLCBureau Tracking ID: -Tracking ID of Related RCE/IEE: Original IEE: Asia 15-061 dated December 1,

2014Tracking ID of Other, Related Analyses:

-

ORGANIZATIONAL/ADMINISTRATIVE DATAImplementing Operating Unit(s):

USAID/Indonesia

Other Affected Operating Unit(s):

-

Lead BEO Bureau: Asia BureauFunding Operating Unit(s): USAID/IndonesiaFunding Account(s): -Original Funding Amount: $99,000,000If Amended, specify funding amount:

$8,821,328 to IUWASH PLUS Activity

If Amended, specify new funding total:

$107,821,328

Prepared by: Trigeany Linggoatmodjo (USAID/Indonesia)Date Prepared: December 10, 2018

ENVIRONMENTAL COMPLIANCE REVIEW DATAAnalysis Type: x Initial Environmental Examination

Amendment Request for Categorical Exclusion

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AmendmentEnvironmental Determination(s): x Categorical Exclusion(s)

x Negative Determination with Condition Positive Determination Deferred (per 22CFR216.3(a)(7)(iv)

Climate Risks Identified (#):Climate Risks Addressed (#):

Low ___x__ Moderate __x___ High ______Low ___x__ Moderate __x___ High ______

1. PURPOSE AND SCOPE

1.1 Purpose and Scope

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, per 22 CFR 216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level Climate Risk Management (CRM) process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation. Potential environmental impacts shall be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), as specified.

The purpose of this amendment #1 is to:● Increase the total estimated cost (TEC) amount of the Indonesia Urban Water,

Sanitation and Hygiene 'Penyehatan Lingkungan Untuk Semua' or (IUWASH PLUS) Activity covered under this IEE from $40,500,000 to $49,321,328;

● Extend the implementation period of IUWASH PLUS from June 22, 2021 to December 21, 2021 to accommodate six months extension;

● Increase the total Life of Program (LOP) funding of this IEE from $99,000,000 to $107,821,328;

● Incorporate CRM under IUWASH PLUS Activity; and● Incorporate additional limitations to the Limitation Section.

All other aspects of activity’s scope and nature as approved in the original IEE (Asia 15-061) remain the same.

1.2 Background and Update

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Despite Indonesia’s growing economy, many of its citizen continue to lack access to essential human services such as quality health care and clean water and sanitation services, and an accountable and service-oriented local government structure. Indonesia’s maternal mortality rate has remained higher than most other countries in the region. Child mortality is declining slowly, but the newborn death rate has remained stagnant, now representing almost 50% of all under-five child deaths. With great wealth disparity in Indonesia, these issues disproportionately affect the most poor and vulnerable, and so these populations are the target of this project.

The USAID CDCS Development Objective 2 - Essential Services for the Poorest and Most Vulnerable Improved)(PAD3) is aimed at reducing preventable maternal and child deaths among the most poor and vulnerable through increased quality of maternal and child health (MCH) care services, reduced barriers to healthcare access, improved access to water, sanitation and hygiene (WASH), and support for decentralized service delivery. During the development process, MCH (re-design) was shifted into Maternal and Newborn Health (MNH) that more align with the Government of Indonesia’s (GOI) new priorities.

1.2.1 IUWASH PLUS

On June 22, 2016, USAID/Indonesia awarded IUWASH PLUS to DAI Global, LLC to improve access to Water, Sanitation and Hygiene (WASH) sector services and increase hygiene practices. IUWASH PLUS, a five-year activity with a total estimated cost (TEC) of $39,557,697, contributes to the GOI established target for universal coverage for water and sanitation and elimination of slum areas, also known as the “100-0-100” target or 100% Water Access, 0% Slum area, and 100% Sanitation Access by 2019. Through improved water and sanitation services and improved key hygiene behaviors, the activity seeks to ultimately reduce preventable deaths and illness due to diarrheal disease, particularly among children under five. The IUWASH PLUS activity supports the Water for the World Act of 2014 priorities of improving the impact, equity, and sustainability of water, sanitation, and hygiene programs for high-priority developing countries.

To contribute to more equitable access, IUWASH PLUS continues USAID’s commitment to target urban, poorest, and most vulnerable communities. The implementing partner must achieve the following high-level results by the completion of IUWASH PLUS activity:

● At least 1,000,000 people gaining access to an improved water source, with at least 500,000 people from the bottom 40% by wealth, as a result of USG assistance.

● At least 500,000 people gaining access to safely managed sanitation services as a result of USG assistance.

In a new development, USAID will accept a gift of $4,499,987.86 from the Swiss State Secretariat for Economic Affairs (SECO) that will require 3-year implementation from February 2019 through December 2021. To accommodate this conditional gift, USAID will continue to provide assistance through a modification of the IUWASH PLUS Scope of Work to extend the period of performance by six months and increase the Total Estimated Cost (TEC) by

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$8,821,328 of which $4,499,987.86 from SECO and $4,321,340.14 from the U.S. Government funding (water earmark), thereby bringing the TEC to 48,379,025. Per Asia Bureau Environmental Officer guidance, this amendment to the IEE Asia 15-061 covers these changes.

The extension of the performance period and increase of the total estimated cost will enable the IUWASH PLUS activity to increase targeted outcomes, improve the sustainability of current deliverables, and carry out SECO’s co-financed activities to provide a comprehensive program to reduce non-revenue water and increase energy efficiency in seven water utilities among IUWASH PLUS targeted municipalities, all in support of GOI plans to achieve the Sustainable Development Goals (SDGs) on water and sanitation by 2030. IUWASH PLUS will continue to implement activities to:

● Increase household level hygiene behaviors and use of water and sanitation services (under Component-1);

● Improve capacity of local government institutions to regulate, oversee, and deliver WASH services (under Component-2) within the Minimum Service Standard requirements;

● Expand financing opportunities for WASH service delivery institutions (under Component-3) which will increase political and institutional support for policies that promote desired sector reform and access to financial resources to fund water and sanitation services improvement at the municipalities/ utilities-level and at the household-level; and

● Advance IUWASH PLUS’ best practices and lessons learned at the national level for scale-up, nationwide adoption, and replication (under Component-4). A secondary objective is to ensure complementarity of IUWASH PLUS tasks with those of relevant key stakeholders at the national-level and document and disseminate activity best practices.

The additional activities will change the achievement of the following high-level results by the completion of IUWASH PLUS activity, as follows:

● Improve the technical and financial performance of seven water utilities among the IUWASH PLUS targeted municipalities with a special focus on the reduction of non-revenue water for six utilities, increased energy efficiency for four utilities, and related capacity building programs on various key technical and non-technical topics. Activities will be implemented over an approximate three-year timeframe starting in early 2019.

● Increase at least four (4) targeted outputs under current IUWASH PLUS indicators, to include a high-level result of providing access to improved water supply services. The associated expected additional outputs are as follows:

○ Increase by 100,000 (from 1,000,000 to 1,100,000) the number of people receiving improved water service quality from an existing basic or safely managed drinking water service, with at least 500,000 people from the bottom 40% by wealth, as a result of USG assistance;

○ Increase by three (from 10 to 13) cities/districts with completed water safety plans or in specific springs vulnerability assessment;

○ Increase by 15 (from 25 to 40) public-private partnerships established with IUWASH PLUS support; and

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○ Increase by $10 million (from $40 million to $50 million) the amount of funding leveraged through WASH financing support.

● Provide additional technical assistance to support the GOI’s plans to achieve the SDGs targets on water and sanitation for all, to include adoption of WASH Community Plans, implementation of sanitation marketing, and identification of IUWASH PLUS signature initiatives for GOI to continue to finance and implement. For this additional technical assistance, the modification will include at least three (3) new outcomes for WASH community plans adopted by stakeholders, latrines and septic tanks sold through the application of IUWASH PLUS sanitation marketing, and the development of guidelines for at least five (5) IUWASH PLUS signature initiatives.

1.2.2 JALIN

On September 8, 2017, USAID/Indonesia awarded JALIN, Indonesian for “intertwined or interwoven,” a three-year project (plus two additional option years) with total award $55,058,068, to DAI Global, LLC with the objective to facilitate an Indonesian Maternal and Newborn Health (MNH) movement by effectively:

● Engaging public and private sector actors (local and global) to make available goodquality MNH health and other support services;

● Engaging civil society actors like Civil Society Organizations (CSOs) and the media to work along with the government while also holding the public and private sectors accountable for delivering good quality services;

● Targeting the poorest and most vulnerable to ensure that cultural acceptance and demand-side incentives are in place; and

● Catalyzing the production and communication of information and evidence across stakeholders to fuel the MNH movement toward achieving better MNH outcomes.

USAID’s role is shifting from funding the implementation of specific interventions to facilitating and supporting partnerships across a variety of MNH stakeholders to catalyze local solutions, leverage public and private financing and increase the pace at which good quality local evidence is made widely available to current and potential partners, depending on their interests and needs. The following core operating principles will guide USAID’s investments under JALIN Activity:

● Support co-creation platforms that facilitate the design, financing and implementation of technically sound and politically feasible local solutions, in order to break through barriers to progress in reducing Maternal Newborn (MN) mortality;

● Adopt a whole-of-market approach that engages a variety of stakeholders including local and national governments and agencies, private (for profit and not for profit) sector actors, CSOs, media, academia and other global partners. Influence systems operating at scale to improve population access to and utilization of essential, evidence-based, life-saving MNH services;

● Align all activities and efforts along a critical path to achieve sustainable results, focusing on a limited number of efforts critical to achieve desired MNH outcomes;

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● Provide catalytic support for system improvements by providing critical information and evidence to inform problem definition, programmatic and policy decisions at all levels; and

● Target and evaluate all support for the extent to which it benefits the poorest and most vulnerable.

JALIN will be implemented into two phases, a first three-year implementation period, with an option to extend the project for another two years. As written in the contract, the total award for the first phase is $35,626,682, well below the ceiling of the original IEE. In addition to that, JALIN is currently proposing to de-scope the project geographical focus areas from ten to six provinces. Therefore, IEE amendment for JALIN Activity is not required until further notice.

1.2.3 Universal Health Coverage (UHC)/Health Strengthening System (HSS)

The UHC/HSS Project consists of technical assistance, training, studies, workshops, and meetings that do not include laboratory work or field studies and will not have direct or indirect impacts on the natural or physical environment, to include training; capacity building; policy and strategy development; monitoring, studies, surveys/public health surveillance and other data-gathering assessments, models, and dissemination of resulting information, documentation of lessons learned and best practices. The implementing partner will work with civil society and community champions to help women and poor communities understand their rights and benefits under the UHC program and develop a unified voice to hold local government accountable for providing the service that the program guarantees. The project will engage these advocates as appropriate.

1.3 Summary of Findings

Accordingly, the Essential Services Program containing the request for a Categorical Exclusion in accordance with 22 CFR 216.2(c)(2)(i) for education, technical assistance and training programs; 22 CFR 216.2(c)(2)(iii) for analysis, studies, academic or research workshops and meeting activities; and 22 CFR 216.2(c)(2)(v) for document and information transfers.

A Negative Determination with Conditions is recommended per 22 CFR 216.3(a)(2)(iii) for IUWASH PLUS due to some possible activities which may lead to adverse environmental impacts if not designed and implemented using sound environmental safeguards. The activities may consist of the following:

● Construction of small scale water supply and sanitation facilities under IUWASH PLUS that may lead to adverse health, safety, social, and environmental impacts or negative impacts on terrestrial and marine biodiversity as well as ecosystem services.

● Technical assistance under IUWASH PLUS to support construction of small scale water supply and sanitation facilities funded and implemented by local government (e.g., PAMSIMAS, DAK, and KOTAKU programs) or other partners (e.g., World Bank, DFAT-SAIIG, and Private Sectors) that may result in indirect adverse environmental impact to include health, safety, and social aspect due to lack of awareness and poor monitoring. USAID’s technical assistance during the planning, design, or implementation will ensure that the activities

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financed or implemented by GOI, other donors or partners will comply with applicable environmental safeguards as well as USAID standards as elaborated in the IUWASH PLUS IEE, EMMPs and EMMRs. USAID’s implementers will follow the environmental procedures of 22 CFR 216 and ensure compliance with all negative determinations with conditions. Local government or other partners may use IUWASH PLUS EMMPs as a reference in addition to their internal environmental procedures when implementing non-USAID funded activities.

1.4 Analysis of Potential Environmental Risk

While development activities are intended to provide benefits for targeted recipients, when managed ineffectively they may cause adverse impacts that can offset or eliminate these intended benefits. Impacts can be direct, indirect, or cumulative. They can also be beneficial or negative. The USAID Sector environmental guidelines are good resources in finding more information on potential impacts for various sectors. For more information please see the USAID Sector Environmental Guidelines:

● Construction: http://usaidgems.org/Sectors/construction.htm● Water Supply and Sanitation: http://usaidgems.org/Sectors/watsan.htm● Healthcare Waste: http://usaidgems.org/Sectors/healthcareWaste.htm● Healthcare Facilities: http://usaidgems.org/Sectors/healthcareFacilities.htm

The following information are summaries of potential environmental impacts for respective sector(s) that are related to the scope of this IEE.

ConstructionConstruction projects may cause both direct and indirect potential adverse environmental impacts. Environmental impacts of special concern include:

● Damage to sensitive or valuable ecosystems● Compaction of the soil and grading of the site ● Sedimentation of surface waters● Contamination of ground and water supplies● Adverse social impacts● Spread of Disease● Damage to aesthetics of site/area

Construction also has potential adverse impacts on workers. Worldwide, construction is a dangerous occupation. In developing countries overall, construction is estimated to be on average 10 times more dangerous than in developed economies. Typical health and safety risks to construction workers in developing countries include falls and falling objects, crush injuries from collapses and heavy equipment, flying debris, and exposure to toxins such as solvents, cement dust, lead and asbestos. Climates with increased temperatures may also lead to more health impacts on workers due to extreme heat stress. Occupational injuries and illnesses can permanently deprive construction workers of the ability to earn a livelihood – and are often fatal.

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Water supply and sanitationThe following are some potential adverse impacts from mismanaged water and sanitation projects including (but not limited to):

● Morbidity and mortality - Water supply and sanitation projects may cause increased incidence of infectious water-borne diseases such as cholera, non-infectious disease such as arsenic poisoning, and water-enabled diseases such as malaria, schistosomiasis or bilharzia.

● Degradation to ecosystems - Adverse impacts to ecosystems can arise from water diversion, construction or decommissioning activities in or near a watercourse, or from fecal contamination of water.

● Fresh water resources depleted - Depletion of fresh water sources can occur when projects do not adequately assess the quantity of available surface and groundwater (including typical seasonal and annual variations.) Other causes include poor mechanisms for regulating withdrawals and use of water, and insufficient monitoring and maintenance of leaks.

● Increased disease transmission from standing, stagnant water - Poor design, operation and/or maintenance of water supply improvements can lead to pools of stagnant water near water taps, water pipes and storage tanks. Improper or ineffective practices for disposing of excreta and solid waste can exacerbate this problem. Stagnant water pools form an excellent breeding place for disease vectors (mosquitoes that carry malaria, etc.). They can also increase transmission of water-related diseases, especially when the wet spots are clogged or contaminated with solid waste or excreta.

Healthcare WasteSome potential adverse impacts from mismanaged healthcare waste include:

● Transmission of disease through infectious waste is the greatest and most immediate threat from healthcare waste. If waste is not treated in a way that destroys the pathogenic organisms, dangerous quantities of microscopic disease-causing agents—viruses, bacteria, parasites or fungi—will be present in the waste. These agents can enter the body through punctures and other breaks in the skin, mucous membranes in the mouth, by being inhaled into the lungs, being swallowed, or being transmitted by a vector organism.

● Chemical and pharmaceutical wastes, especially large quantities, can be a threat to the environment and human health. Since hazardous chemical wastes may be toxic, corrosive, flammable, reactive, and/or explosive, they can harm people who touch, inhale or are in close proximity to them. If burned, they may explode or produce toxic fumes. Some pharmaceuticals are toxic as well.

● Medical waste shall be handled in accordance with appropriate chapters of USAID healthcare waste environmental guidelines and the latest version of WHO guidelines.

Healthcare FacilitiesEnvironmentally poor design and management of healthcare facilities can adversely affect patient and community health countering the very benefits they are intended to deliver. For instance, many—but not all—of the potential environmental impacts and consequent health risks posed by health care facilities are associated with healthcare wastes and their management. Other concerns include:

● Environmental contamination and patient, staff, and community exposure –

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such as with human excreta, grey water, disposal of pharmaceuticals and pollution from incinerators.

● Pesticide spills and exposures – such as with insecticides related to mosquito nets.

● Asbestos contamination and exposure.● Degradation or loss of local environmental resources from poor construction.

1.5 Climate Risk Management (CRM)

All USAID projects and activities approved after October 1, 2016 are required to comply with ADS 201mal: Climate Risk Management for USAID Projects and Activities. CRM is the process of accessing, addressing, and adaptively managing climate risks that may impact the ability of USAID programs to achieve objectives and in the same time to protect USG investment from the impact of the climate change in the future to ensure sustainability. IUWASH PLUS was awarded before the establishment of the CRM requirement; however, the Bureau Environmental Officer (BEO) encourages all Agreement/Contract Officer Representatives (A/CORs), Activity Managers, or Assistance Objective (AO) teams who are currently managing an on-going project to complete CRM assessment when proposing IEE amendment, especially when the assessment will be beneficial to the project. With regard to this recommendation, the COR of IUWASH PLUS has completed a Climate Risk Screening, in consultation with the Climate Integration Lead (CIL) and Mission Environmental Officer (MEO).

Table 1.1 CRM Assessment Matrix for IUWASH PLUS Activity (Part 1)

ComponentsTasks / Defined or

Anticipated Tasks or Interventions*

Climate Risks*Climate

Risk Rating*

Component 1 - Improving Household WASH Services

●Increase household demand for WASH services through adoption of key hygiene behaviors through a comprehensive social and behavior change programming to generate demand for WASH products and services.

●Facilitate a robust market for household WASH product and services through engagement of commercial enterprises.

●Increase household access to finance for WASH services, such as microfinance and other creative new financing and credit sources for poor households.

●Expand poor inclusive approaches to increase WASH service provision with local governments and water utilities.

●Reduced number of people participating in WASH training and awareness-raising due to climate extreme events, such as flooding, landslide, and community dislocation.

●Reduced availability of local governments funding and private sector interest to support community activities due to diversion of staffs and resources for emergency response or other priority activities to address extreme events and other climate impacts.

●Increased public health risk due to inundation and

Moderate

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ComponentsTasks / Defined or

Anticipated Tasks or Interventions*

Climate Risks*Climate

Risk Rating*

overflow of low lying latrines and septic systems caused by increased precipitation flooding and sea level rise.

Component 2 - Strengthening City and District WASH Institutional Performance

●Improve water utility (PDAM) performance to operate, finance and manage safe drinking water service delivery to the urban poor.

●Develop and improve city and district sanitation unit performance to operate, finance and manage city-wide sanitation service delivery to the urban poor.

●Strengthen the WASH enabling environment within local governments through integrated planning, development of supportive policies and regulations, and budgetary commitments.

●Assist local governments and institutions to improve the protection, management and allocation of raw water resources by addressing the water scarcity issues and the protection of raw water supplies to ensure long term service delivery in the face of growing demand and a changing climate.

●Increased damage to water supply and sanitation infrastructure due to flooding and landslide.

●Water utility could not meet the increased demand for safe drinking water due to changes in the physical environment, including the hydrology, such as decreased raw water availability in the dry season and reduced infiltration caused by heavy rainfall and rapid run-off.

●Reduced raw water quality and increased pathogen due to increased evaporation from higher temperature that will increase treatment cost and lower treatment efficiency of the water utility.

●Disruption to water and sanitation supply chain and services due to reduced access to communities affected by flooding, landslide and extreme storm events.

Moderate

Component 3 - Strengthening the WASH Financing Environment

●Facilitate a supportive enabling environment for WASH financing through engagement of key ministries and the financial services authority in facilitating financing opportunities between local government, PDAM and private investors.

●Facilitate increased access to finance for WASH through diverse channels, such as commercial banks, government financing, public private partnership (PPP), business to business (B2B), output-based aid, and other promising opportunities.

●Provide technical assistance to

●Reduced investment from local governments and private sector due to diversion of resources for emergency response or other priority activities to address extreme events and other climate impacts.

Low

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ComponentsTasks / Defined or

Anticipated Tasks or Interventions*

Climate Risks*Climate

Risk Rating*

key financing facilities through increased readiness of the GOI financing facility and platform, such as the National Urban Water Supply (NUWAS).

Component 4 - Advancing National WASH Advocacy, Coordination and Communication

●Build capacity of national WASH coordination agencies to better carry out their coordination responsibilities and inform national policy and advocacy efforts.

●Strengthen the national level WASH policy and regulatory environment through sharing of successful approaches and supporting the adoption of new national level policies, regulation, guidelines and frameworks.

●Share and mainstream lessons and best practices to ensure scale-up and replication, including analysis and assessment that generate evidence and learning for greater and sustained impacts for adoption by relevant line ministries.

●Reduced resources for and enforcement of government policies and regulation related WASH due to diversion of government staffs and resources to address extreme events and other climate impact.

Low

Table 1.2 CRM Assessment Matrix for IUWASH PLUS Activity (Part 2)

ComponentsHow Climate Risks are

Addressed in the Activity*

Further Analysis /Next Steps for Activity Implementation*

Opportunities to

Strengthen Climate

ResilienceComponent 1 - Improving Household WASH Services

●IUWASH PLUS conducts capacity building and training activities with local community leaders on location that is easy to access and preferentially scheduled during the dry season to minimize risk from precipitation.

●IUWASH PLUS works with local government to create an enabling environment that attracts from public and private sector investment.

●Through Local Sustainable and Innovation Component (LSIC), IUWASH PLUS engages diverse stakeholders in open innovation approaches to

●Strengthen the capacity of local community leaders and champions to lead and to monitor the implementation of their WASH development agenda and creating a group of community facilitators to implement WASH training and awareness raising activities at community level.

●Address market landscape at local level to facilitate penetration for WASH services from public and private players and support local government to establish market based approach at local level.

●Climate-proof WASH system can help integrate and promote emergency preparedness.

●Climate-resilient WASH services can decrease demands on women to manage household WASH facility (time & workload) and maintain sanitary condition.

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ComponentsHow Climate Risks are

Addressed in the Activity*

Further Analysis /Next Steps for Activity Implementation*

Opportunities to

Strengthen Climate

Resiliencebuild local capacity and to provide climate-resilient WASH technology options at household level.

●Improve design, construction and siting of the latrine and introduce watertight septic system will prevent health hazards during flood events and incorporate EMMP conditions in regular activity monitoring system.

●Engagement of varied stakeholders to develop and implement climate-resilient WASH activities will increase the overall sustainability of the impact and investment.

●Shared concern and synergy with other development objective will promote more holistic approach to water security.

●Collaboration with the meteorology and climatology agency and utilization of seasonal and weather information for planning purposes.

Component 2 - Strengthening City and District WASH Institutional Performance

●IUWASH PLUS works with local government and water utility to develop raw water vulnerability assessment and action plan to address climate risks and to put in place appropriate measures to safeguard their natural and physical assets, including relocation of vital infrastructure and installation of infiltration ponds for groundwater and spring water recharge.

●IUWASH PLUS also works with national government to develop a national framework and strategy for water safely planning (WSP) to ensure the safety of drinking water through the use of a comprehensive risk assessment and risk management approaches in water supply from catchment to consumer.

●Through LSIC Component, IUWASH PLUS engages a diverse set of stakeholders in open innovation approaches that build local capacity through grants, subcontracts and other mechanisms to deliver sustainable solutions to significant WASH sector challenges, including in the construction of small-scale WASH infrastructure, that takes into account the potential impact and future climate change scenarios in order to

●Incorporate climate risk issues in the activity planning process especially for areas likely to be affected by extreme climate events, such as identification of alternative route and access to the areas and utilization of seasonal/weather forecast.

●IUWASH PLUS will take into account the potential impact and and future climate change scenarios in the selection of technology, design and siting of water and sanitation projects to reduce damage to the WASH infrastructure.

●Continue to support the development of innovative WASH designs and improvements to ensure resilience to climate change, including implementation of some pilot activities with local organizations, such as spring vulnerability assessment, water pressure sensor, non-revenue water and energy efficiency, construction of small/shared communal sanitation, etc.

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ComponentsHow Climate Risks are

Addressed in the Activity*

Further Analysis /Next Steps for Activity Implementation*

Opportunities to

Strengthen Climate

Resiliencereduce damage to the WASH infrastructure.

Component 3 - Strengthening the WASH Financing Environment

●IUWASH PLUS builds the capacity of national and local government in strengthening the WASH financing environment largely aims to fill the gap of the inherent limitation of public funds financing.

●IUWASH PLUS supports improved institutional capacity at both national and local level to maximize the various fund sources through development of technical guidance, training materials, facilitating issuance of regulation for water and sanitation microfinancing, budget tracking tools, etc.

●Support local government and utilities to develop a road map and business plan, including the financing mechanism, that will also address climate-related risks to better secure future investment opportunities and sustainability of the services.

Component 4 - Advancing National WASH Advocacy, Coordination and Communication

●IUWASH PLUS improves outreach efforts related to raw water scarcity and protection given the corresponding increase in water demand and improves coordination of programs across government agencies on water safety planning.

●Support development of national level policy to ensure funding flow to WASH priority programs through building the capacity of national WASH agencies, including line ministries and donor programs.

Climate risk ratings for this activity are low and moderate. The low rating applied for Component 3 and 4 where the majority of the activities are centered around providing technical assistance and capacity building to national and local government counterparts on the WASH financing environment, the policy and regulatory environment, as well as national coordination. The low rating indicates that climate change is unlikely to affect the achievement of the activity. Although no additional action is required to address the climate risks, several indicative responses, analysis and opportunities are included for further consideration.

The qualitative risk rating of the activities under Component 1 and 2 are within moderate characterization, in which the severity falls under low probability and moderate impact starting from reduced participation and decreased spring discharge, increased public health risk due to inundation and overflow from septic systems caused by flooding, reduced raw water quality and increased pathogens due to increased evaporation, increased damage to WASH infrastructure due to flash flood, landslide, etc. These risks will be addressed by incorporating the acceptable risk management options during activity implementation. The learning from implementing CRM will be captured and shared as part of the IUWASH PLUS

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monitoring and evaluation process and most importantly as the driver to influence adaptive management.

1.6 Link to the previous documents

Original: Asia 15-061 https://ecd.usaid.gov/repository/pdf/43246.pdf

2. CERTIFICATION OF COMPLIANCE

The COR of IUWASH PLUS receives Annual Work Plans (including the EMMP), Quarterly Reports, and other reports from the project implementer regularly. As written in the EMMP document, IUWASH PLUS monitors and reports on the results of its mitigation action using the Environmental Mitigation and Monitoring Report (EMMR) Form that is incorporated into the project’s Technical Assistance Management Information System (TAMIS) by each designated environmental officer in each region. IUWASH PLUS utilizes a specific Environmental Compliance module in TAMIS to register new activities and track ongoing activities. The Environmental Review Form (ERF) and Environmental Review Report (ERR) are also filed by the regional team for review and approval by the national environmental officer, especially for activities classified as Negative Determination with Condition. This web-enabled TAMIS system supports monitoring and evaluation and is very useful to consolidate reporting of a wide range of activities, including reporting on the environmental compliance aspects of the activities. IUWASH PLUS also dedicated a specific section in the activity’s quarterly and annually progress reports, a reflection to IUWASH PLUS’ commitment in ensuring that all the potential risks are well managed and mitigated and that the the activities do not, in any way, give negative impact to public health or environmental conditions in the areas in which it operates.

Currently the project is finalizing its annual work plan and EMMP for Project Year-3. For LSIC Activities that received a Negative Determination with Conditions determination, IUWASH PLUS submitted ERF and ERR, as necessary, for USAID review and approval prior to secure the agreement with the prospectus grantee. In addition, the COR and MEO have performed site visits to verify the compliance of the project in the field. Based on information in the provided reports and the site visits, the project is in compliance and no environmental compliance deficiencies or findings have been found during the implementation of the project. The MEO also delivered Environmental Compliance training for IUWASH PLUS project staff in Central Java region (in September 2018) and South Sulawesi region (in October 2018). The purpose of this training was to increase staff awareness regarding the potential adverse impact of their activity on the environment, and to improve staff capacity in preparing ERF and ERR. With regard to small-scale construction under LSIC component in North Sumatra region, the MEO plans to conduct another environmental compliance training for project staff in the near future.

3. LIMITATION

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In addition to the limitation section listed on the original IEE Asia 15-061 for Essential Services Program, this IEE does not cover activities involving:

a. DCA or GDA program;b. Procurement or use and/or disposal of Asbestos Containing Materials (ACM)

(i.e. piping, roofing, etc.), Polychlorinated Biphenyls (PCB), or other hazardous/toxic materials for construction projects.

4. REVISIONS

Per 22 CFR 216.3(a)(9), when ongoing programs are revised to incorporate a change in scope or nature, a determination will be made as to whether such change may have an environmental impact not previously assessed. If so, this environmental analysis will be amended to cover the changes. Per ADS 204, it is the responsibility of the USAID Agreements/Contracting Officer Representatives (A/CORs) to keep the MEO, Regional Environmental Advisor (REA), and BEO informed of any new information or changes in the activity that might require revision of this amendment and environmental determination.

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USAID APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED

CLEARANCE:

ENV:   _____cleared________ Date: ___12/12/18____        Matthew Burton        USAID/Indonesia – Environment Office Director

MEO:  _____cleared________ Date: ___12/13/18____        Putu Kurniawan        USAID/Indonesia – Mission Environmental Officer 

REA:    _____cleared w/ edits_ Date: ___1/30/19______        Mark Childerhose        USAID/Central Asia – Regional Environmental Advisor

RLO:   _____cleared _______ Date: ___1/31/19_____        Betty Chung        USAID/Indonesia – Resident Legal Officer

DDIR: _____cleared________ Date: ____2/8/19______        Ryan Washburn         USAID/Indonesia – Deputy Mission Director

DECISION OF USAID/INDONESIA MISSION DIRECTOR:By signing below, you approve the IEE Amendment #1 to Asia 15-061 Essential Service Program

APPROVAL:

DIR: ____approved_______ Date: ____2/8/19______        Erin McKee        USAID/Indonesia – Mission Director

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DECISION OF THE ASIA BUREAU ENVIRONMENTAL OFFICER:

By signing below, you approve the IEE Amendment #1 to Asia 15-061 Essential Service Program

CONCURRENCE:

BEO: _____________________ Date: ___________        William Gibson        Asia Bureau Environmental Officer

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